Cash at judge’s house: 3-judge panel confirms allegations against Justice Varma, CJI seeks his response

The Supreme Court-appointed three-judge probe panel is learnt to have confirmed the cash discovery allegations against Allahabad High Court's Justice Yashwant Varma during a fire at his residence in the national capital on March 14 when he was a judge of the Delhi High Court.

Asking Justice Varma to respond to the report, Chief Justice of India Sanjiv Khanna has reportedly advised him to step down in view of his indictment by the probe panel, sources said.

The three-member Committee consisting of Punjab and Haryana High Court Chief Justice Sheel Nagu, Himachal Pradesh High Court Chief Justice GS Sandhawalia and Justice Anu Sivaraman of the Karnataka High Court submitted its report dated May 3 to the CJI on May 4.

The panel found clear evidence to confirm the allegations that a huge stash of cash was found in the storeroom of Justice Varma's official residence in New Delhi at the time of the fire, sources said.

The panel is said to have analysed evidence and recorded the statements of over 50 people, including Delhi Police Commissioner Sanjay Arora and Delhi Fire Service chief who were among the first responders to the fire at Justice Varma's official residence at around 11.35 pm on March 14.

Based on the March 24 recommendation of the Supreme Court Collegium, Justice Varma was on March 28 transferred to his parent high court, the Allahabad High Court, where he has not been assigned any judicial work “for the time being”.

The three-member panel was set up by CJI Khanna after receiving an initial report from Delhi High Court Chief Justice DK Upadhyaya on the allegations against Justice Varma. Justice Varma had denied the allegations.

If Justice Varma ignores the CJI’s advice to step down, Justice Khanna would intimate the President and the Prime Minister of the committee’s findings, warranting initiation of proceedings for his removal.

CJI Khanna was expected to take a decision on the issue before his retirement on May 13.

In an unprecedented move, the Supreme Court had on March 22 released the initial probe report submitted by the Delhi High Court Chief Justice along with Justice Varma’s response denying the allegations.

In his response, Justice Varma had said, "I state unequivocally that no cash was ever placed in that storeroom either by me or any of my family members and strongly denounce the suggestion that the alleged cash belonged to us. The very idea or suggestion that this cash was kept or stored by us is totally preposterous.”